Gaotu Techedu (NYSE:GOTU) Shares Up 5.9% - Should You Buy?

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report)'s stock price rose 5.9% during mid-day trading on Wednesday . The company traded as high as $4.09 and last traded at $4.05. Approximately 663,696 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 2,184,553 shares. The stock had previously closed at $3.82.

Gaotu Techedu Stock Performance

The company has a market capitalization of $1.02 billion, a price-to-earnings ratio of -7.06 and a beta of 0.42. The business has a 50 day moving average price of $3.24 and a 200-day moving average price of $2.85.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced its quarterly earnings data on Thursday, May 15th. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.12. Gaotu Techedu had a negative return on equity of 37.79% and a negative net margin of 26.36%. The company had revenue of $28.53 million for the quarter, compared to the consensus estimate of $189.76 million.

Gaotu Techedu announced that its Board of Directors has approved a share repurchase program on Thursday, May 15th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Shares buyback programs are often a sign that the company's board believes its stock is undervalued.

Institutional Trading of Gaotu Techedu

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Millennium Management LLC increased its holdings in Gaotu Techedu by 602.0% during the 1st quarter. Millennium Management LLC now owns 1,996,144 shares of the company's stock worth $6,487,000 after purchasing an additional 1,711,774 shares in the last quarter. Virtu Financial LLC bought a new position in shares of Gaotu Techedu in the first quarter valued at approximately $137,000. Invesco Ltd. grew its holdings in shares of Gaotu Techedu by 2.3% in the first quarter. Invesco Ltd. now owns 126,090 shares of the company's stock valued at $410,000 after acquiring an additional 2,876 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its holdings in shares of Gaotu Techedu by 2,782.6% in the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 301,892 shares of the company's stock valued at $981,000 after acquiring an additional 291,419 shares in the last quarter. Finally, National Bank of Canada FI bought a new position in shares of Gaotu Techedu in the first quarter valued at approximately $1,788,000. 48.42% of the stock is owned by institutional investors.

Gaotu Techedu Company Profile

Gaotu Techedu Inc, a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams.